A FEELING!!!!!
And you an advocate and practitioner of the charts
This is tantamount to treason
I dont know how you can live with yourself after such an utterance
I think you best plead insanity if mully asks you to explain such a heinous statement.
Regards
bracke
And you an advocate and practitioner of the charts
This is tantamount to treason
I dont know how you can live with yourself after such an utterance
I think you best plead insanity if mully asks you to explain such a heinous statement.
Regards
bracke
iainpw
That's as maybe, but its no reason for Finirama to take leave of his senses - perhaps he has been in the sun too much.
The futures are showing a rise for the dow but 2 questions - will it hold and will it get back above 10.000.
In any event even if Finirama is proved correct, I suspect it will be a short term event
With current turmoil, overvalued markets and falling bullish % index the way points down.
Regards
bracke
That's as maybe, but its no reason for Finirama to take leave of his senses - perhaps he has been in the sun too much.
The futures are showing a rise for the dow but 2 questions - will it hold and will it get back above 10.000.
In any event even if Finirama is proved correct, I suspect it will be a short term event
With current turmoil, overvalued markets and falling bullish % index the way points down.
Regards
bracke
stevecartwright
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Anyone help me. I was just about to sell the 4400 FTSE May PUT using LIFFE as the guide price for the first time when my broker suggested I trade the FTSE Euro Option. Prices weren't as good. I usually trade on equity options but thought this may be a new addition to the armoury. Can anyone tell me the difference.
stevecartwright said:
Hi Steve,
FTSE options (ESX Contract) trade 25/75 strike ie 4425, 4475, 4525 and so on.
The other contact has no volume/liquidity.
If your going to sell PUTS can I ask what hedge you are thinking of / have in place? ( assuming your doing this to open a position....)
I know Friday is expiry but this market could break down by / before then....
My screen in currently quoting for May 4425 puts 36/37.5 and 4375 May puts 15/16.5 points.
KJH
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interesting ...a long and two sitting on the fences..I am short FTSE now as I view that chart (30 min dow) I posted quite bearish (9953 when I posted it) but it doesnt really matter as there are clear stops for either long or shorts imo on that chart.
stevecartwright - the option series that end in 00 or 50 (e.g. 4400, 4450, 4500 etc) are American style options, and can be assigned at anytime. This means that in the case of the 4400 puts, if the index spiked down, the buyer of the options you have sold could exercise them and demand that you deliver at 4400, which could be painful if the index has spiked down to 4300. Even more galling then if the market moves back up again above 4400 by expiry.
The series that end in 25 and 75 (4425, 4475, 4525 etc) are European style, and these can only be exercised at expiry. This means that if the index spikes down, the holder of the option can sell in the market, but cannot exercise them against the holder until expiry. In practice there is just a cash settlement for the difference between the strike price and the actual price if the options are still ITM. So if you are short but expect the position to pull back your way, you can hold on without having to worry about whether you are going to get assigned, and then get the expected move taking place after you have been "ejected" from the party.
HTH
The series that end in 25 and 75 (4425, 4475, 4525 etc) are European style, and these can only be exercised at expiry. This means that if the index spikes down, the holder of the option can sell in the market, but cannot exercise them against the holder until expiry. In practice there is just a cash settlement for the difference between the strike price and the actual price if the options are still ITM. So if you are short but expect the position to pull back your way, you can hold on without having to worry about whether you are going to get assigned, and then get the expected move taking place after you have been "ejected" from the party.
HTH
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